Bitcoin (BTC) Price Today Strays Above $85,000 as Markets Brace for President Donald Trump's Liberation Day

After a bit of early-day volatility, Bitcoin settled above $85,000 as markets geared up for President Donald Trump's Liberation Day.

After a bit of early-day volatility, Bitcoin settled above $85,000 as markets geared up for President Donald Trump’s “Liberation Day.”

The crypto markets were mostly seen consolidating, with the total market cap now at $2.837 trillion, down by 0.83%.

The Fear and Greed Index saw a decent bump, rising to 44, but remained in Fear territory.

Altcoins followed Bitcoin’s lead, and most tokens posted little to no gains.

Why are crypto markets down today?

Traders were jittery ahead of what President Donald Trump is calling “Liberation Day,” marked by a wave of new tariffs aimed at countries like China, Canada, and Mexico.

The proposed 25% tariff on auto imports, plus broader duties on foreign goods, had investors worried we’re heading into another inflation spike, and that has typically acted as a bearish catalyst for risk-on assets like Bitcoin.

While the tariffs are meant to cut the US trade deficit and boost homegrown manufacturing, traders are concerned that they could end up triggering a risk-off mood in global markets like crypto.

Back in early March, when Trump hit Canada, Mexico, and China with tariffs, Bitcoin tumbled hard, from $105K to $92K overnight.

The community is concerned that history could repeat itself.

Higher import costs mean pricier goods for American consumers, which fuels inflation.

That typically drives investors toward traditional safe havens like gold, which hit a record high of $3,150 per ounce earlier today, or US Treasurys, instead of Bitcoin, which still trades more like tech stocks than digital gold.

And with the Fed in no rush to cut interest rates, the next move likely won’t come before June, there’s not much in terms of macro fuel to lift crypto prices right now.

CME’s FedWatch Tool puts the odds of no rate cut at the May 7 meeting at 83.5%, which doesn’t exactly inspire confidence.

Add all that up, and you’ve got a market that’s nervous, cautious, and not ready to go risk-on again.

For now, Bitcoin holding above $85K is a small win, but it risks a move in either direction, according to a number of analysts on X.

Will Bitcoin go up?

According to trading firm QCP Capital, today’s tariff announcement is just the beginning of an extended period of bearish momentum.

In a note to investors, QCP warned that retaliation from nations like China and Mexico could escalate tensions fast.

“The US seems increasingly intent on isolating itself in pursuit of more favorable trading terms,” they said, adding that the countries on the receiving end are “not likely to concede.”

QCP analysts expect all risk assets to “remain under pressure,” for the time being.

However, some believe a recession could actually turn out bullish for Bitcoin and other risk assets.

If growth slows sharply, the Fed may be forced to pivot, slashing interest rates and possibly restarting quantitative easing to stimulate the economy.

That kind of liquidity boost has historically favoured assets like crypto, which tend to thrive when borrowing is cheap and markets are flush with cash.

A recession could come into play if the tariff-driven inflation squeezes consumers while business investment stalls, dragging down GDP.

If that’s paired with tighter credit and weak global demand, the Fed may have no choice but to reverse course.

In terms of technical analysis, Bitcoin was “one Daily Candle Close away” from setting up for a potential breakout, according to Rekt Capital.

According to the analyst, if bulls manage to push a daily close above the descending blue line and hold that level on a retest, we could see a shift in momentum toward a new technical uptrend.

Others like Captain Faibik also added to the bullish outlook.

Seem like Ready for an imminent Breakout..

When writing, Bitcoin was slowly climbing toward $87K, but for the move to hold, it needs to stay above $84K, according to analyst AlphaBTC.

A break below that support level could trigger a deeper correction, with the first key level to watch being the March 14 low of around $79,900.

Nevertheless, there’s a strong chance the market, along with Bitcoin, could drop once Trump officially announces the tariffs, just like it has during similar announcements in recent months.

Altcoins stay still

Over the past day, the altcoin market rose 5% to $1.15 trillion, with the Altcoin Season Index showing a reading of 15.

Despite this, some major altcoins such as Ethereum (ETH), XRP (XRP), and BNB (BNB) were slightly down 1-2%, while others like Solana (